§1Who it is for

  • New industrial units with loans for fixed assets and/or working capital

Useful if

Bank-financed new units in Puducherry.

Do not spend time on it if

Self-financed units.

§2Eligibility

  1. Loan from a financial institution: PIPDIC, other Government corporation, scheduled banks including co-operative banks
  2. Investment on or after 1 Apr 2017
  3. At least 60% of employment to people of the UT
  4. No transfer/disposal of fixed assets for 5 years

§3Benefits

  • 25% of annual interest paid, max ₹5 lakh a year, from date of commercial production
  • 5 years in Puducherry and Karaikal regions; 7 years in Mahe and Yanam regions

§4Norms — pattern of assistance

  1. Claim must carry a 'No Due Certificate' from the bank; subsidy is paid through the bank
  2. Committee chaired by Director of Industries recommends; Director sanctions
  3. All claims need a CA certificate

§5Documents

Tick each one as you get it ready.

Purchase invoices for plant & machinery

§6How to apply

  1. 1

    Prescribed form (offline) to the Directorate of Industries and Commerce, Puducherry

§7Pros and cons

Merits

  • Covers working-capital loans too
  • Longer period (7 years) for Mahe and Yanam

Demerits

  • Only 25% of interest, capped at ₹5 lakh a year
  • Needs no-due certificate, so any overdue blocks the claim

→Related schemes

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Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. G.O. Ms. No. 4/Ind.&Com./A6/2017
  2. myScheme - Interest Subsidy (MESIFAI-VI), Puducherry
  3. G.O.Rt. No. 16/DI&C dated 9 Jan 2025 - interest subsidy to 4 units

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.